MUMBAI: Uday Kotak’s recent argument that quick commerce boom could eventually lead to a political dilemma as it challenges traditional grocery retailers has triggered another debate.
However, there are others who argue that these are part of the transformations happening in any economies and this will inevitably continue to happen as part of the evolving economies.
Platforms like Blinkit, Zepto, and Swiggy Instamart are popularising 10-30 minute deliveries, and with the quick commerce market projected to grow from $6.1 billion in 2024 to $40 billion by 2030, its influence is only expected to deepen.
Kotak noted that India has achieved unique success in quick commerce, which has yet to see similar success elsewhere. However, he pointed out that the model might undercut local stores, whose sales are already impacted by these rapid delivery models.
In response, some argue that this shift mirrors how large retail chains like Lulu and Carrefour have affected small kiranas, with bigger banks and insurers similarly influencing the market share of smaller counterparts.
Inevitable transformation?
One analyst while talking to businessbenchmark.news remarked, “Transformation is inherent in markets – be it multi-brand stores challenging kiranas, or big banks and insurers reshaping finance. Quick commerce, though disruptive, reflects evolving consumer preferences.”
This perspective suggests that evolving consumer demands are behind the growth of quick commerce, representing broader market adaptation rather than a targeted disruption. Proponents of quick commerce assert that it caters to a need for speed and convenience in urban areas, positioning itself as a complementary force rather than a competitor to smaller stores.
The debate highlights both the economic impact and potential social implications of quick commerce. Policymakers could be called upon to address this balance, potentially regulating the sector to protect smaller players while embracing innovation.
